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NEW YORK (Dow Jones) – Weak US consumer confidence hit Wall Street hard on Tuesday. In June, the index fell to its lowest level since February 2021. The sub-indices of the assessment of the current situation and expectations also decreased. This has heightened fears that the US Federal Reserve will take a tougher stance on upcoming interest rate hikes and a possible recession. As a result, the initial strong increases triggered by the decision to mitigate the coronavirus in China could not be sustained.
The Dow Jones index lost 1.6 percent to 30,947 points after hitting the daily high of 31,885 points. The S&P 500 fell 2.0 percent and the Nasdaq Composite fell 3.0 percent. There were 1,022 (Monday: 1,785) winners and 2,229 (1,496) losers. 125 (122) titles were closed unchanged.
Investors continued to hesitate between concerns about inflation and concerns about a recession, he said. As a result, concerns continued about how aggressively the US Federal Reserve would raise interest rates in the face of economic threats. In addition, there were increased adjustments to the position at the end of the quarter.
According to the chairman of the New York Fed, John Williams, growth in the US economy will slow down. This is necessary in order to cool down inflation. It assumes, however, that the recession is preventable, he told CNBC. Williams added that at the next meeting the Fed will discuss whether to raise interest rates by 50 or 75 basis points.
“The question is when we hit rock bottom and when the tipping point is, and it’s not necessarily immediate,” said Eloise Goulder, director of World Equity Trading at JPMorgan Chase. “To be optimistic for the second half of the year, we need to see that inflation has peaked and the data is stabilizing,” he adds.
Nike by numbers lighter
Sporting goods manufacturer Nike exceeded expectations in the fourth fiscal quarter, despite falling sales and profits. The company also announced a $ 18 billion stock buyout and presented optimistic outlook. However, the price fell by 7.0 percent. Retail has addressed increased stocks and supply chain bottlenecks.
US bank stocks performed better than the market as a whole. Morgan Stanley shares gained 0.9 percent. Goldman Sachs and Wells Fargo fell 0.4 percent and 0.1 percent, respectively. After the institutes pass the US Federal Reserve’s annual stress test, dividends will be increased. Goldman Sachs and Wells Fargo want to increase it by 20 percent, while Morgan Stanley wants 11 percent. Morgan Stanley also announced a share buyback program worth up to $ 20 billion.
JP Morgan Chase & Co plans to leave the third-quarter dividend at $ 1 per share as the bank needs to allocate more capital to complete the annual stress test. Titles lost 0.5 percent.
Spirit Airlines shares rose 1.1 percent. JetBlue Airways (-0.3%) increased its offer for the airline. It was only the day before that the company decided to accept a takeover offer from Frontier Group Holdings. Spirit shareholders are expected to vote on the bids at an extraordinary general meeting on Thursday.
The dollar rebounds – oil prices continue to rise
The dollar recovered from the recent losses and the dollar index gained 0.6%. On the other hand, the euro fell more clearly below the USD 1.06 level. Commerzbank analyst You-Na Park-Heger said the euro will find it difficult to gain further, given concerns that the global economy may weaken. In addition, there is still the risk of an energy crisis.
Oil prices rose to their highest level since mid-June, gaining as much as 2.4%. It was reported that the decision to relax China fueled speculation about higher demand for goods. In addition, there were doubts about the ability of Saudi Arabia and the United Arab Emirates to significantly increase production. In addition, the G7 is still considering how to limit the production of Russian oil and gas.
Bonds stabilized after the recent sharp sell-off. The 10-year rate of return fell 1.6 basis points to 3.19%.
The price of gold has dropped to its lowest level in about two weeks. Concerns that the US Federal Reserve will raise interest rates more than previously expected to curb inflation are putting pressure on the non-interest bearing precious metal.
INDEX last + / -% absolute + / -% YTD
DJIA 30 946.99 -1.6% -491.27 -14.8%
S&P 500 3,821.55 -2.0% -78.56 -19.8%
Nasdaq Comp. 11 181.54 -3.0% -343.01 -28.5%
Nasdaq-100 11 637.77 -3.1% -370.47 -28.7%
Term Profitability Bp to VT Profitability VT +/- Bp YTD
2 years 3.13 +1.1 3.12 240.0
5 years 3.25 +0.1 3.25 199.2
7 years 3.26 -1.5 3.28 182.2
10 years 3.19 -1.6 3.21 168.2
30 years old 3.29 -2.4 3.32 139.3
FOREX last +/-% Tue 8:18 Mon, 18:40% YTD
EUR / USD 1.0527 -0.5% 1.0580 1.0597 -7.4%
EUR / JPY 143.37 -0.0% 143.37 143.40 + 9.5%
EUR / CHF 1.0076 -0.4% 1.0114 1.0126 -2.9%
EUR / GBP 0.8636 + 0.1% 0.8623 0.8626 + 2.8%
USD / JPY 136.20 + 0.5% 135.52 135.32 + 18.3%
GBP / USD 1.2190 -0.6% 1.2271 1.2284 -9.9%
USD / CNH (offshore) 6.7026 + 0.2% 6.6859 6.6895 + 5.5%
BTC / USD 20 233.46 -2.6% 20 820.08 20 746.62 -56.2%
ROHL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 111.72 109.57 + 2.0% 2.15 + 54.8%
Brent / ICE 117.81 115.09 + 2.4% 2.72 + 56.2%
GAS VT close +/- EUR
Dutch TTF 130.10 129.69 + 0.5% 0.64 + 52.0%
METALS last day before +/-% +/- USD% YTD
Gold (spot) 1,819.71 1,822.60 -0.2% -2.89 -0.5%
Silver (Spot) 20.82 21.17 -1.7% -0.35 -10.7%
Platinum (Spot) 912.00 911.55 + 0.0% +0.45 -6.0%
The future of copper 3.75 3.76 -0.4% -0.02 -15.7%
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DJG / ros
(END) Dow Jones Newswires
June 28, 2022 4:17 PM ET (20:17 GMT)
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